In 2024, the Kingdom saw several main economic developments, the majority of which fell under the purview of Vision 2030’s objectives.
According to official statements, 87% of the vision’s objectives were met. In this report, we highlight the most notable economic developments that occurred in the Kingdom in the previous year.
On January 1, 2024, Saudi Arabia’s government agencies, institutions, and funds decided to cease business with foreign corporations or commercial institutions with regional headquarters outside the Kingdom. This move aimed to boost the economy’s value, attract foreign direct investment, and strengthen the country’s position as a regional economic hub.
Moreover, the Saudi government has introduced a 30-year tax incentive package to encourage international companies to establish regional headquarters in Saudi Arabia. The package includes flexible Saudisation requirements, attractive executives, and other incentives to attract top talent to work in regional headquarters.
Additionally, over 500 businesses have chosen to establish headquarters in Saudi Arabia, surpassing the 2030 target of 480. The Saudi Crown Prince unveiled the National Biotechnology Strategy on January 25 to enhance the country’s position in innovation and biotechnology as part of its efforts to promote the knowledge economy and transition to future sectors.
In February 2024, Saudi Arabia’s Ministry of Finance and National Debt Management Centre introduced the Sahi product for government sukuk, a Sharia-compliant financial instrument issued by the government to private investors to enhance economic developments.
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Establishing of Five Businesses
Mohammed bin Salman announced Alat as one of five enterprises developed by the Public Investment Fund in 2024 to establish the Kingdom as a global hub for sustainable industries, focusing on advanced electronics and technology.
Besides, Alat operates in seven major business units—advanced industries, semiconductors, smart home appliances, smart health, smart electronics, smart buildings, and new generation infrastructure—producing goods for domestic and international markets.
On May 27, 2024, the New Space Group (NSG) emerged as a leading national player in the space and satellite services sector. As the second company in the Kingdom, NSG aims to enhance satellite and space services and strengthen the local industry’s position in the global market.
On September 18, 2024, the third business, “Qsas,” was announced, focusing on creating interactive experiences based on the Kingdom’s history, culture, and Islamic heritage. Additionally, the business will establish and manage high-quality exhibits to cater to the growing demand for pilgrims, Umrah performers, and tourists seeking unique cultural experiences.
Smart Residence Firm for Residential Complexes (SARC) came forward on October 20, 2024, as a real estate development and operation firm in the Kingdom. Further, SARC aims to meet the rising demand for worker housing alternatives, offering services to public and private projects by investing in the industry and building housing complexes for various worker categories.
Also, the company seeks to improve the quality of workers’ housing by managing projects in line with global standards set by the International Finance Corporation and the European Bank for Reconstruction and Development.
The Fund launched “Adeera,” a hotel management company, on December 10, 2024, making it its fifth business. In addition to a focus on hotel management and operations, the new business will combine the best industry standards with the genuine hospitality of Saudi Arabia.
Privatisation of six sports clubs
On August 4, 2024, the Ministry of Sports, in collaboration with the National Centre for Privatisation, announced that six sports clubs—Al-Zulfi, Al-Nahda, Al-Akhdoud, Al-Ansar, Al-Urouba, and Al-Khulud—would be made available to local and foreign investors for various levels of privatisation. This is part of the Crown Prince’s investment and privatisation project.
In addition to developing football and its competitions, the transfer and privatisation of clubs generally aim to improve the quality of several sports in the Kingdom by 2030, produce a distinguished sports generation on a regional and international level, elevate the Saudi League to the top ten leagues in the world, raise the Saudi Professional League’s revenue from 450 million riyals to over 1.8 billion riyals annually, and increase the league’s market value from 3 billion to over 8 billion riyals.
Likewise, the foundation of Riyadh’s public transport system and one of its components, on November 27, 2024, King Salman bin Abdulaziz Al Saud officially opened the Riyadh Metro project.
Furthermore, the United Nations Tourism Organisation reported that the Kingdom achieved a 61% growth rate in foreign visitors in the first eight to nine months of 2024, ranking third globally for the highest growth rate in the same period in 2019, according to the latest data from December 2024.
When the International Federation of Association Football (FIFA) declared that the Kingdom had won the bid to host the 2034 World Cup, Crown Prince Mohammed bin Salman announced the creation of the Supreme Authority for Hosting the 2034 World Cup on December 11, 2024.
Saudi Arabia is making steady progress in diversifying its economic developments and realizing its Vision 2030 through projects and initiatives introduced in 2024, as part of significant strategic growth.
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